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Wednesday, Feb 1, 2023

Broadcom’s $778M Solution

Irvine-based Broadcom Corp. is investing nearly $800 million for its new headquarters next to Orange County Great Park, according to regulatory filings.

The company, OC’s largest office tenant, last week provided the first financial details of the initial phase of its planned campus, which will be the largest new office development in the area in more than a decade.

The chipmaker currently is OC’s largest technology company by market value, at about $24.5 billion.

Broadcom said in its latest annual report that it is paying $128 million to buy the land for the project from Aliso Viejo-based FivePoint Communities Management Inc., the master developer of the Great Park Neighborhoods land.

“The construction of the new facility and the associated relocation is currently expected to cost an additional $650 million through 2018,” Broadcom said in its latest annual report, which was released last week.

The land slated to hold the company’s new campus is said to be about 72 acres, putting the price of the sale at a little less than $1.8 million an acre.

That falls short of per-acre land prices seen for for-sale housing and multifamily projects in Irvine of late, but is on the high end for land deals for offices and other commercial projects in the city.

Broadcom’s campus will be on the southern edge of the former El Toro Marine base, near the intersection of the San Diego (405) and Santa Ana (I-5) freeways and close to Irvine’s train station.

The land purchase, announced last November, is expected to close by the end of March, according to Broadcom.

1.1 Million SF

The company plans to initially build a 1.1-million-square-foot campus, but it could expand to up to 2 million square feet if needed.

At more than $500 per square foot, the implied development and construction costs for the first stage of the new campus—assuming 1.1 million square feet of space is built—will greatly exceed the typical costs of area office developments, which tend to run closer to $350 per square foot.

Eight buildings are expected at the campus at its buildout, according to city filings.

The largest office would run about 455,000 square feet—about on par with a typical 18-story high rise in OC.

Details on Buildings

Six of the proposed offices would “serve as engineering buildings, which will feature mixed lab space and standard office space,” according to city filings.

The other two buildings would include a five-story, 308,000-square-foot office for executives and administration, among other uses, and a 34,000-square-foot fitness center.

The company expects to begin moving to the campus in 2017.

The project is intended “to meet the requirements projected in our long-term business plan,” Broadcom’s annual report said.

The campus is being designed by San Francisco-based architecture firm Gensler and will be built by DPR Construction of Redwood City. Both companies have offices in Newport Beach.

University Research Park

Broadcom will stay at its current location in University Research Park, where it leases about 920,000 square feet from Newport Beach-based Irvine Company, during construction of its new home.

The chipmaker has signed several extensions to its initial lease for its current headquarters, a business park near the University of California-Irvine and San Joaquin Hills (73) Toll Road.

Broadcom’s campus there opened about a decade ago and initially ran close to 650,000 square feet.

The last extension was signed last May and keeps Broadcom in a majority of the space through mid-2018. It will be paying about $2.70 per square foot for that space in the last year of the lease, according to regulatory filings.

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Mark Mueller
Mark Mueller
Mark is the Editor-in-Chief of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.

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